BlackRock has launched its first bitcoin exchange-traded product in Europe as part of its efforts related to the desire to satisfy the demand for cryptocurrency in new markets, which has been showing recent growth.
It is worth noting that the mentioned world’s largest asset manager has already raised over $50 billion into similar products in the United States. Information was published on the BlackRock online page that this investment company, headquartered in New York, has launched its iShares Bitcoin ETP, which is domiciled in Switzerland and listed in Paris, Amsterdam, and Frankfurt.
It is worth noting that last month the media reported on the intentions to launch the mentioned product. At that time, BlackRock declined to comment on the matter. The company was one of the first institutional investors to offer exchange-traded products in the United States to track the spot price of bitcoin after the Securities and Exchange Commission first approved them in January last year.
BlackRock has partnered with Coinbase as custodian and Bank of New York Mellon as administrator on the latest product. The relevant information is available on the investment company’s online page.
The new ETP trades under the IB1T ticker on Xetra and Euronext Paris, on Euronext Amsterdam it uses BTCN.
According to the data, which were published by the media, the product was launched with a temporary fee waiver of 10 basis points. This means that the expense ratio will decrease to 0.15%. It will be in force until the end of the current year. In Europe, the top crypto ETP is the CoinShares Physical Bitcoin ETP, which charges 0.25%. Against this background, the offer from BlackRock is much cheaper while the waiver is in place.
Stephen Wundke, director of strategy and revenue at crypto investment company Algoz, stated in a media comment that the availability of the iShares Bitcoin ETP may not have the same reaction in Europe as in the United States. In this context, it was noted that high-quality investment products through regulated asset managers are more accessible in Europe. Moreover, it was overlined that bitcoin is more easily purchased. At the same time, it was noted that the ability of traditional family offices throughout Europe to hold a small percentage of their assets in so-called digital gold is a good thing. Stephen Wundke said that in this case, one should not expect the volume of purchases to reach $60 billion in the first quarter. According to him, there is no doubt that BlackRock’s aggressive fee structure was designed to keep competitors out of the market and call into question the commitment of any new entrants. He stated that the appropriate type of competition is beneficial for investors and digital currencies. According to him, market players will have to compete to provide investors with the best offering.
Manuela Sperandeo, BlackRock’s head of Europe and Middle East iShares Product, said during a conversation with media representatives that the launch of the new product reflects what could be considered a tipping point in the industry – a combination of established demand from retail investors and an increase in the number of professionals who are now really getting into the fold.
Ajay Dhingra, head of research at decentralized exchange aggregator Unizen, noted in a commentary for journalists that the mentioned move reflects BlackRock’s confidence in the European Union’s Markets in Crypto-Assets Regulation framework. Also in this context, it was noted that in the United States, the digital asset policy was largely inconsistent. At the same time, the European Union has steadily embraced compliant blockchain adoption. In this case, the stability of regulation that companies strive for was ensured.
According to the data contained in the BlackRock earnings report, in the fourth quarter of last year, an average of more than $11.55 trillion was managed by this firm. In addition to the top bitcoin ETF, the company also launched its Grayscale Ethereum Trust ETF. In this case, it means the top ether (ETH) ETF, with $3.46 billion in assets under management.
As we have reported earlier, BlackRock’s Tokenised Fund Surpassed $1B in AUM.
